Johnson & Johnson (JNJ)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	53,495,000	53,703,000	60,567,000	64,388,000	55,294,000	65,236,000	63,847,000	60,424,000	60,979,000	59,889,000	53,769,000	52,533,000	51,237,000	57,578,000	45,892,000	44,226,000	45,274,000	44,333,000	41,799,000	41,987,000
Total current liabilities	US$ in thousands	46,282,000	44,370,000	54,170,000	60,373,000	55,802,000	45,543,000	44,821,000	43,390,000	45,226,000	44,561,000	38,721,000	40,932,000	42,493,000	38,847,000	36,772,000	33,689,000	35,964,000	35,162,000	31,353,000	29,111,000
Current ratio		1.16	1.21	1.12	1.07	0.99	1.43	1.42	1.39	1.35	1.34	1.39	1.28	1.21	1.48	1.25	1.31	1.26	1.26	1.33	1.44

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $53,495,000K ÷ $46,282,000K
= 1.16

The current ratio of Johnson & Johnson has shown fluctuation over the past eight quarters, ranging from a low of 0.99 to a high of 1.43. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 suggests that the company is able to cover its current liabilities with its current assets.

Overall, the current ratio has generally remained above 1, indicating that Johnson & Johnson has had sufficient current assets to cover its current liabilities over the past two years. However, the downward trend in the current ratio from Q2 2022 to Q1 2023 may imply a decrease in liquidity and ability to meet short-term obligations during that time period. It is essential for the company to closely monitor and manage its current assets and liabilities to ensure liquidity and financial health in the future.